Standpoint Research Starts Medifast (MED) at Buy; This Consumer Staple Has Value
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Price: $33.57 --0%
Rating Summary:
4 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 8 | New: 5
Rating Summary:
4 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 8 | New: 5
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Standpoint Research initiates coverage on Medifast (NYSE: MED) with a Buy. PT $24.00.
Analyst, Ronnie Moas, said, "MED ranked # 1 out of 100 names in our Staples-100 report from Sunday. MED ($16.32) is trading at < 12X 2011 estimates (of $1.42) and just 10X estimates for 2012 (of $1.60). Note that the 2012 estimate of $1.60 is down from $1.82 (90 days ago). Revenues are expected to rise 12% in 2012 versus 2011. P/S is < 0.8X. Short interest is only $50 mln but that is high as a percentage of the MED market capitalization. Good news from MED could trigger a short squeeze as we witnessed with Temper-Pedic (NYSE: TPX) last week...unfortunately we exited and locked in a 20% gain there before the short squeeze was triggered. Based on average daily shares traded volume, it would take 10 days to cover short interest in MED shares."
For an analyst ratings summary and ratings history on Medifast click here. For more ratings news on Medifast click here.
Shares of Medifast closed at $16.45 yesterday.
Analyst, Ronnie Moas, said, "MED ranked # 1 out of 100 names in our Staples-100 report from Sunday. MED ($16.32) is trading at < 12X 2011 estimates (of $1.42) and just 10X estimates for 2012 (of $1.60). Note that the 2012 estimate of $1.60 is down from $1.82 (90 days ago). Revenues are expected to rise 12% in 2012 versus 2011. P/S is < 0.8X. Short interest is only $50 mln but that is high as a percentage of the MED market capitalization. Good news from MED could trigger a short squeeze as we witnessed with Temper-Pedic (NYSE: TPX) last week...unfortunately we exited and locked in a 20% gain there before the short squeeze was triggered. Based on average daily shares traded volume, it would take 10 days to cover short interest in MED shares."
For an analyst ratings summary and ratings history on Medifast click here. For more ratings news on Medifast click here.
Shares of Medifast closed at $16.45 yesterday.
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